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Score: 0 of 1 pt 15 ot 15 (13 complete) Hw Score: 87.83%, 13.18 of 15 pts P9.2 (similar to) E Question Help Listed here,
Score: 0 of 1 pt 15 ot 15 (13 complete) Hw Score: 87.83%, 13.18 of 15 pts P9.2 (similar to) E Question Help Listed here, are data that pertain to the corporate bond market. (Note: Each 'period" below covers a span of 6 months.) a. Compute the confidence index for each of the 4 periods listed above b. Assume te la est confidence index or period 0 effect amounts o 86.83%, while the yeld spread between high-and average-grade corporate bonds is 85 basis points. Based on your calculations, what's happening to bond yeld spreads and the confidence index over the period of time covered in the problem (i.e., from period 0 through period 4)? c. Based on the confidence index measures you computed, what would be your overall assessment of the stock market? In which one or more of the periods (1 through 4) is the confidence index bullish? In which one s) is it bearish? a. Confidence index for period 1 is %. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Period 1 5.27% 2 Period 3 Period 4 O Average yield on 10 high-grade corporate bonds Yield on the Dow Jones average of 40 corporate bonds Yield spread (in basis points) Confidence index 5.67% 5.15% - 6.51% r 6.01% 4.87% 158 Print Done
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